Why did the Puts eroded so fast when the spot price also came down? We are not even half the way through to expiry.

Active Member

I’m an active trader in Sun pharma. A strange thing that I noted today is that the put prices came down exponentially even though the spot price also came down. I couldn’t comprehend the correlation. Could someone pls explain this phenomenon and the possible reason behind. Thanks.

Like : SUN PHARMA 520PE was trading at 7.50 when spot was around 542 though within a couple of mins to closure spot came down and closed at 540.5 but the 520PE crashed and closed at 6.75